In a surprise move that reshapes the American motorcycle landscape, Polaris Inc. has announced that it is selling a majority stake in Indian Motorcycle to Carolwood LP, a Los Angeles-based private equity firm known for investing in heritage brands. The transaction is expected to close in early 2026.
Indian Motorcycle accounted for approximately 7 percent of Polaris’ total revenue in the past year, generating around $478 million. Polaris will retain a minority equity stake but will otherwise let Indian Motorcycle operate as an independent company. CEO Mike Speetzen emphasized that the move allows both Polaris and Indian Motorcycle to focus on their core strengths, accelerate innovation, and move faster in their respective markets.
Under Polaris, Indian Motorcycle has transformed from a dormant name to a serious competitor challenging Harley-Davidson with models like the Challenger, Scout, and Chief. Speetzen praised the brand’s progress and expressed confidence that Indian Motorcycle, with Carolwood’s backing, is well positioned for continued growth.
Carolwood principals highlighted Indian Motorcycle’s iconic heritage and ambitious future plans. The new company will retain its manufacturing facilities in Spirit Lake, Iowa, and Monticello, Minnesota, as well as its design and technology center in Burgdorf, Switzerland. Approximately 900 employees will transition to the standalone company, ensuring continuity in operations and dealer support.
Mike Dougherty, Polaris’ President of On Road and International, who has served nearly 28 years with the company and oversaw Indian Motorcycle’s growth, will continue to manage the brand until the deal closes. He has announced his intention to retire following the transaction.
The sale allows Polaris to sharpen its focus on off-road vehicles and powersports while granting Indian Motorcycle the dedicated leadership and resources needed to build on its current momentum. The deal is expected to boost Polaris’ annual adjusted earnings per share by about $1 and increase adjusted EBITDA by roughly $50 million.
This marks a major turning point for a brand that dates back to 1901, two years before Harley-Davidson was founded, promising a new era for Indian Motorcycle as it rides into independence.
